ESTATE TAX UPDATE Many estate tax experts predicted that congress would act before the end of 2009.  The prediction was that the estate tax structure that was in place in 2009 would be extended through the end of 2010.  When congress failed to act by the end of 2009 the experts were still predicting that something would be done - either 1.) a fix that would be retroactive to January 1, 2010, 2.) a fix that would allow executors to choose estate tax rules in effect in 2009 or no estate tax, but basis carryover, or 3.) a fix that would be in effect from date of enactment until the end of the year.  It looks like none of the above.  Congress more than likely will not act on estate tax issues before the end of the year and if they do it will not be retroactive, but in effect as of January 1, 2011.  CURRENT LAW Estates for those passing away in 2010 will not pay an estate tax.  There is, however, basis carryover of the assets to the heirs of the estate.  There is an limited basis step-up allowed - $1,300,000 plus an additional $3,000,000 of basis step-up for assets going to surviving spouses. If no changes are made, 2011 estates of $1,000,000 or more will be taxed at a maximum rate of 55%.